UBS Initiates Coverage of Kubota with "Buy" Rating (KUB)

Jul.12.06 | About: Kubota Corp. (KUBTY)

Despite the global business environment of rising interest rates UBS AG (NYSE:UBS) sees continued growth for Kubota's (KUB) internal combustion equipment segment. In fact, UBS sees this segment as the main driver behind what it thinks will be management forecast beating quarterly results. UBS gave Kubota a 1,300 yen ($11.42) target share price.

Kubota's ordinary shares (Tokyo: 6326) lost 0.85% on an overall down day in Tokyo to close at 1,049 yen ($9.21 or the equivalent of $46.06 for its ADRs when taking into consideration the current exchange rate and its 1:5 ADR listing ratio). Kubota's ADRs closed yesterday at $46.60. The 1,300 yen target share price by UBS equates to a $57.10 target for its ADRs.


Kubota Corp (KUB) 1-year chart: